4 September, AtoZForex.com, Lagos – The former Greek finance minister, Yanis Varoufakis has once again made headlines with a controversial statement, stating that “even a child could see why the Greek bailout was not going to work”.
Yanis varoufakis said: “A 10-year old with some basic mathematics skill would know that if you have an unsustainable debt and you try to solve it by pretending that it is a problem of liquidity and piling up on it the largest loan in history on conditions of stringent austerity,… A 10-year old knows that cannot end well”.
With so much pressure on Greece’s economy, it eventually consented to another bailout with controversial austerity conditions, as the menace of a heightened pressure on Greece to leave the euro zone in an utterly disordered fashion looms. “We have a chess board and Greece is just a little pawn to be sacrificed” Varoufakis further added in is condemnation of the Eurozone structure.
An exquisite central banker
Having resigned as finance minister this summer after a 6 months stalled progress in pursuing the renegotiation of the austerity conditions of Greece’s bailout by international creditors. Varoufakis believes the debt cycle is utterly wrong for his country.
Mario Draghi, the European Central Bank president was praised by Varoufakis, describing him as “an exquisite central banker”- despite European Central Bank(ECB) earlier this year restricted funding to Greek banks in a move which hindered the progress of Greece’s banking system.
Philip Legrain, the former economic adviser to the president of the European commission and author of “European Spring” also agrees with Varoufakis’ ideas and believes PM Tsipras should have followed the former finance minister’s plan to introduce the drachma and leave the Euro.
“I cannot look my electors in the eye”
Alexis Tsipras has called for a second election this year, but Varoufakis who is not standing in for re-election said, “I cannot look my electors in the eye and say to them that our party is capable now of stabilizing the economy”.
Tsipras who stepped down ahead of the new election, is facing a split within his own party Syriza between pro- and anti-bailout forces. Yanis Varoufakis opines that Tsipras doesn’t actually believe in the conditions of third Greece bailout, the third in five years.
Think we missed something? Let us know down in the comments section.